Chat Transcript

Devarsh Vakil

Head -Advisory (Private Client Group) , HDFC Securities

Markets : What next ?

Questions Answered

Q

guest: Dear sir, If I purchase reliance shares on 6th , am I eligible to get bonus shares

: Ex-date for the Reliance bonus shares is tomorrow. So if you buy the shares till today, you are eligible for the bonus shares. Please be aware that bonus is just an accounting entry. bonus shares does not change the fundamentals of the company. Do not buy shares just because some company announce a bonus.

Q

guest: There has been some talk of a Nifty correction to 9600 levels! Any chance of that happening now?

: Our markets are resilient against negative news flows. All time high of 10137 would remain next resistance, while support is now shifted upwards to 9840. Geo-political risks are making investors nervous. Markets have risen but the earnings have not cought up and that is why such events are used as an excuse to correct. I am of the opinion that rather than looking at the Nifty , we should focus on the stocks in our portfolio.

Q

guest: What is the future of Bhansali engineering for long term

: We are bullish on these stocks and have issued a buy research report from lower levels. Out one year target is Rs 96.

Q

guest: hi I\\`m holding Infosys from 1 yr, purchased it at 1023 a year ago, and itc at 255 a year ago. What should I do??

: I think you should tender your Infosys shares in the buyback. If you hold less than 173 shares per account as per our calculations , around 40% of the shares will be accepted in the buyback at the price of Rs. 1150.

Q

guest: Have Sunpharma 600 at RS 487 what we have to do we have 2-3 sessions

: Sun pharma was in down trend, and now trying to form a bottom near 450 levels. hold the stocks with 450 as the stop loss for the short term. Over the longer term resolution of FDA related issues at Halol plant will determine its long term prospects.

Q

asha.syi: Sir, I am retired with Rs. 10.00 lakhs in my hand.Out of this I plan 5 lakhs for bank FD and 5 lakhs to purchase shares of Infy, Itc,HPCL and RIL, Is this OK?

: I would recommend rather than purchasing shares directly, you put half of the amount in balanced funds and start SIP in diversified equities funds with the remaining half. Fixed deposits are safe , and you must have small amount of immediate contingencies. Buy safety comes with its cost. Post tax returns of fixed deposits are not significant. If you risk nothing, than you may risk the everything !

Q

guest: Target for ultratech cement and mahanagar gas

: We are bullish on the prospects of the Mahanagar Gas. We have issued a buy report on the company with a target 1158.

Q

rkaryan000: how will perform market after south koria incident

: The U.S. markets slumped on the Korean nuclear blast. This delayed impact on the U.S. markets is unlikely to rattle the global markets too much. Any escalation on this front will be viewed negatively , but we are of the opinion that full-scale war is a low probability event as of now. The recent fall in U.S. markets is more because lack of progress on President Trump’s pro-growth agenda.

Q

himanshufetagra: hello sir, equitas holding @172/share. hold or sell?

: Our company has a report with a target of Rs 150. so we are not very bullish in this one in the short term.